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Challenges Facing the Legal Landscape

Challenges Facing the Legal Landscape

The “big recession” of 2007-2008 led to a steep increase in the quality, efficiency and value required in the provision of legal services. Commoditization of legal work alongside the arising of new, non-traditional legal services, constitute dynamic changes that currently affect the legal sector.

Regulations such as the Legal Services Act 2007, permanently affected the way business is done in the UK. It somehow enabled the proliferation of alternative business structures, providing legal services with external investments (1). As a result, the legislation has encouraged new contenders in the market putting an emphasis onto rethinking entirely legal services. They use various mediums to connect, offer and deliver high quality services, with arguments such as, “no hourly fees, no shocking bills” (2). As a result there is an increase in the demand of more predictable legal expenditure, alongside alternatives to the billable hours (3).

Such entities benefit from flexible limbs, which enabled them to access outside talent 24-7, have an effective use of technology, and the propensity to rapidly scale up or cut back operations. Legal Process Outsourcing Providers (LPOs), have widely expanded, ranging from the usual provision of due diligence services, to the tackling of agreement drafting in M&A transactions. The trade is envisaged to double in size in the forthcoming years (3).

The diversification of legal services led clients to turn to cost effective solutions, prioritising “multi-sourcing” and other cost effective ways to cut down the prices of legal services. Hence, clients now assume the driver seat, dictating cost, pricing and strategic direction, previously exclusive attributes of a law firm (4).

There is a genuine necessity for legal firms to rapidly deliver high quality tailored services, combined to an effective use of internal and external resources coupled with a better use of IT.

 

  1. http://blog.law.cornell.edu/voxpop/2013/08/30/future-of-legal-services-and-the-development-of-legal-knowledge-management/
  2. http://blog.law.cornell.edu/voxpop/2013/08/30/future-of-legal-services-and-the-development-of-legal-knowledge-management/
  1. http://www.lawpracticetoday.org/article/new-landscape-challenges-opportunities-facing-law-firms/
  1. http://blog.law.cornell.edu/voxpop/2013/08/30/future-of-legal-services-and-the-development-of-legal-knowledge-management/
  1. http://blog.law.cornell.edu/voxpop/2013/08/30/future-of-legal-services-and-the-development-of-legal-knowledge-management/

 

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